Americans have made progress putting their finances in order and are ready to borrow again – giving the world’s largest economy another driver of spending and growth.

Household net worth soared to a record high in the first quarter, Federal Reserve data show, and the financial-obligations ratio relating consumer debt to income matched the lowest in 33 years. Consumer loans are rising, and the American Bankers Association reports the share of delinquencies on bank cards is the smallest since 1990.

“Household finances are in the best shape in decades,” said Joseph Carson, director of global economic research at AllianceBernstein … “We now have a creditworthy borrower. It’s a powerful ingredient” ….

House Majority Leader Eric Cantor (R-Va.) appeared on Fox News on Sunday, and when the discussion turned to a possible self-imposed budget crisis, the Virginia Republican said lawmakers should be “focused on trying to deal with the ultimate problem, which is this growing deficit.”

What Cantor said was the opposite of the truth – he said the nation has a “growing deficit,” when in reality, we have a shrinking deficit. We can have a discussion about whether the House Majority Leader was deliberately trying to deceive the public – Republicans have an incentive to convince the public that U.S. finances are in worse shape than they really are – or whether Cantor simply doesn’t know the basics of current events. But I’m afraid it’s either one or the other.

Former baseball players in the Negro League, from left to right, Pedro Sierra, Minnie Minoso, and Ron Teasley, talk outside the West Wing of the White House in Washington following their meeting with President Obama.

A new survey from the robo-firm Public Policy Polling finds that Democrat Michelle Nunn is locked in a close battle for the Georgia Senate seat with several of the main potential GOP challengers. This — combined with the fact that the GOP primary is a crowded affair — has Dems looking at this race as a potential firewall: If Dems can somehow win in Georgia (or even Kentucky), Republicans will have to sweep four Dem incumbents out of office to take the Senate.

When the House Judiciary Committee passed a late-term abortion ban in June, Republican leaders scrambled to find a female, media-savvy legislator to bring the legislation to the floor. Their biggest problem: Not a single Republican woman was represented among the committee’s 23 Republican members. They eventually settled on Tennessee Rep. Marsha Blackburn, who isn’t on the Judiciary Committee.

The episode underscored a growing problem that is worrying Republicans: Women are badly underrepresented within their party in the Congress. Only eight percent of House Republicans are women, and there are only four female Republican senators. Of the long list of potential 2016 GOP presidential contenders, there’s not a single woman.

AP: …. The president is holding eight fundraisers for his re-election campaign in the Los Angeles area, San Francisco and Seattle …. After departing Milwaukee, Obama was to attend two fundraisers in Los Angeles. The first is an outdoor fundraising reception at the home of soap opera producer Bradley Bell and his wife, Colleen, featuring a performance by the rock band the Foo Fighters. The campaign expects 1,000 supporters to attend, with tickets starting at $250.

Obama is also attending a dinner at Bell’s home co-hosted by actor Will Ferrell and his wife, Viveca Paulin. Eighty people are expected to attend the dinner, with tickets costing $35,800. The fundraising will benefit the Obama Victory Fund, a joint fundraising committee for Obama’s campaign and the Democratic National Committee.

NYT: The Obama administration will propose a $5 billion competitive grant program to encourage states to overhaul the teaching profession, federal education officials said Tuesday, using its Race to the Top school improvement competition as a model.

The new program, which needs Congressional approval, is part of President Obama’s budget proposal and expands upon a call in his State of the Union address last month to give schools more resources “to keep good teachers on the job and reward the best ones.”

National Journal: The national Pew Research Center poll confirms that President Obama, at least for now, is reassembling the coalition that powered him to his 2008 victory.

The Pew survey, closely tracking last week’s ABC News/Washington Post poll, shows that in a potential general election match-up against Mitt Romney…. Obama’s numbers now closely align with his support against McCain. Overall, the Pew survey put Obama ahead of Romney by 52 percent to 44 percent, close to his actual 53 percent to 46 percent victory over McCain.

TPM: Republicans have taken to describing President Obama’s budget as “deficits built to last” – a play on Obama’s call for an economy built to last …..The chart tells you quite starkly: Yes, Ryan’s plan also gives you… deficits built to last!

NYT: Despite the deep divide between some religious leaders and government officials over contraceptives, the latest New York Times/CBS News poll found most voters support the new federal directive that health insurance plans provide coverage for birth control.

…. 65 percent of voters in the poll said they supported the Obama administration’s requirement that health insurance plans cover the cost of birth control, and 59 percent, said the health insurance plans of religiously affiliated employers should cover the cost of birth control.

…. A majority of Catholic voters in the poll were at odds with the church’s official stance, agreeing with most other voters that religiously affiliated employers should offer health insurance that provides contraception…..

Reuters: General Electric Co plans to hire 5,000 U.S. military veterans over the next five years and to invest $580 million to expand its aviation footprint in the United States this year.

The largest U.S. conglomerate unveiled the moves ahead of a four-day meeting it is convening in Washington starting on Monday to focus on boosting the U.S. economy, which has been slow to recover from a brutal 2007-2009 recession.

Between 2009 and 2011, the federal government has collected $7.20 for every dollar spent on fighting fraud, according to the Department of Health and Human Services (HHS) inspector general. That’s a jump from the $5.10 for every dollar spent between 1997 and 2008, records show.

“It demonstrates that our collaborative efforts to prevent, identify and prosecute the most egregious instances of health care fraud have never been stronger,” Attorney General Eric Holder said. “Over the years, we’ve seen that as these crimes harm all of us — government agencies and programs, insurers and health care providers, and individual patients.”

AP: The number of people seeking unemployment benefits rose last week to a seasonally adjusted 377,000, up from a nearly four-year low the previous week. But the longer-term trend is pointing to a healthier job market.

Applications have trended down over the past few months. The four week average has declined to 377,500. When applications fall consistently below 375,000, it tends to signal that hiring is strong enough to lower the unemployment rate. Some economists say the figures suggest further job gains ahead…..

Reuters: New orders for manufactured goods rose in December and a gauge of future business investment rebounded, while new claims for jobless benefits rose only moderately last week, suggesting the labor market was still healing.

Ed Kilgore (Washington Monthly): As Paul and Steve announced yesterday, I am taking on the daunting task of succeeding Mr. Benen at Political Animal. I read every single comment following Steve’s announcement of his new gig, and am awe-struck by the devotion he has inspired from a very well-informed readership.

John Cole (Balloon Juice): I gotta say, every time I get some one on one time with that guy, which is basically what the SOTU is- an opportunity for the President to speak to America, I just want to vote for him early and often. The contrast between Obama and the crowd of miscreants in the GOP running to replace him is just striking.

…. every time I hear him speak, I am still aware of all the things I disagree with him on, but think “That is a good man doing what he thinks is best.”….

Paul Krugman: From the Daniels reply to the State of Union: Contrary to the President’s constant disparagement of people in business, it’s one of the noblest of human pursuits. The late Steve Jobs – what a fitting name he had – created more of them than all those stimulus dollars the President borrowed and blew.

…. Steve Jobs designed great products. It’s very, very hard to make the case that he created large numbers of jobs in this country. Obama’s auto bailout, just by itself, saved a lot more jobs than Apple’s US employment.

David Corn (Mother Jones): …. With this speech, Obama forcefully presented a view of the nation and the tasks at hand that positioned him as a can-do, patriotic, forward-looking optimist against obstructionist Republicans with a dark take on the nation’s prospects. He pitched government policies that would bolster middle-class security ….. “Take the money we’re no longer spending at war,” he declared, “use half of it to pay down our debt, and use the rest to do some nation-building right here at home.”

… This State of the Union — Obama’s best so far — won’t move the needle (as politicos like to say) in Washington. The president’s calls for bipartisan cooperation, for reforming the easy-to-abuse rules of the Senate, for campaign finance reform, and for lowering the heated rhetoric will not be heeded. But he demonstrated that when it comes to concocting a political messaging — and tethering it to his past achievements and current proposals — he can be masterful….

Steve Benen: Daniels is the serious one? Indiana Gov. Mitch Daniels delivered the Republican response to President Obama’s State of the Union address, to the delight of GOP insiders who still hope he might run for president. The national platform offered Daniels an opportunity to back up the hype — pundits routinely praise the former Bush budget director as a serious, thoughtful conservative, and this was his chance to prove it.

President Obama phones Jessica Buchanan’s father John last night to inform him of her rescue.

MSNBC: In a daring nighttime raid Tuesday, U.S. Navy SEALs rescued two hostages, including one American, who were being held by kidnappers in Somalia, U.S. officials tell NBC News.

American Jessica Buchanan, 32, and a 60-year-old Dane, Poul Thisted, were working for a Danish relief organization in northern Somalia when they were kidnapped last October. U.S. officials described their kidnappers as heavily armed common criminals with no known ties to any organized militant group.

Greg Sargent (Washington Post): Conservatives are furious with GOP candidates like Newt Gingrich and Rick Perry for attacking Mitt Romney’s Bain tenure as capitalism run amok. Gingrich has claimed that Bain “looted” other companies, and Perry today slammed enterprises like Bain as “vultures” who “eat the carcass” of its victims, prompting a fresh round of outrage from the right.

Conservatives have good reason for being angry about this. In attacking Romney’s Bain years in these terms, his fellow Republicans are mainstreaming and giving bipartisan legitimacy to one of the chief arguments Obama and Dems will use against Romney in the general election. They are badly undermining Romney’s whole pushback against it – giving Dems an advantage in the coming war to define Romney’s Bain years, which will be as central to the general election narrative as the war over John Kerry’s Vietnam service was in 2004.

WH: …. Since Chrysler and GM emerged from bankruptcy in June of 2009, the auto industry has added 170,000 jobs – the best period of job growth for the industry in more than a decade.

When President Obama took office, the American auto industry was shedding jobs by the hundreds of thousands and GM and Chrysler faced the possibility of liquidation – which would have caused at least 1 million more jobs to be lost. The President made the tough choice to help provide the auto industry the temporary support it needed to grow and prosper.

Today, GM and Chrysler have repaid their government loans, and the “Big Three” automakers – GM, Ford, and Chrysler – are all adding jobs, generating profit, and investing in their U.S. facilities. Auto sales climbed in December for the seventh consecutive month and GM, Chrysler, and Ford saw their market share increase to over 47 percent in 2011, the second straight year that Detroit gained market share against their foreign competitors, something that had not previously happened since 1995….

TPM: In a positive sign for the economy, November saw the biggest growth in consumer credit for 10 years. It should have happened much earlier. What threw it off was the GOP taking the debt ceiling hostage.

Steve Benen: A few weeks ago, PolitiFact made a serious mistake in selecting its “Lie of the Year” … Democratic claims that House Republicans voted to “end” Medicare earned the ignoble designation, despite the fact that the Democratic argument is easily supportable.

It was easy to predict what would happen next. As part of the party’s 2012 campaign message, Democrats would run ads criticizing GOP lawmakers for their anti-Medicare vote … GOP leaders would go to every station in the country, telling them not to run campaign commercials that include claims proven to be untrue. That PolitiFact’s decision was ridiculous wouldn’t matter.

And sure enough, we’re already seeing this start to play out. Greg Sargent has the latest: Earlier this week, the Progressive Change Campaign Committee aired a TV ad, timed to the GOP presidential debate, attacking GOP incumbent Rep. Charlie Bass for voting to “end Medicare.” The Bass campaign sent letters to two New Hampshire stations – WMUR and WHDH – demanding the ads be yanked. Crucially, the Bass campaign repeatedly cited PolitiFact’s Lie of the Year designation to bolster its case.

AFL-CIO president Richard Trumka lauds Cecilia Muñoz’s appointment to head the Domestic Policy Council: “Cecilia Muñoz is a dedicated advocate for civil and human rights and longtime friend to the Labor movement. The AFL-CIO congratulates Cecilia on her appointment to Director of the Domestic Policy Council and looks forward to working with her to develop and implement a policy agenda that improves the lives of working families.”

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President Barack Obama is introduced by Environmental Protection Agency (EPA) Administrator Lisa Jackson before he speaks to employees of the EPA in Washington January 10

Obama’s approval rating is soft, but new polls of South Carolina and Florida show him ahead of Gingrich and Romney. Michael Tomasky asks: could the GOP be headed for disaster?

How can Barack Obama, as this new NBC/Marist poll has it, be beating Newt Gingrich and Mitt Romney in South Carolina, of all places? …. Is it conceivable that 10 months and three weeks from now, Obama could actually win the state? If it happens, we will know that the Republicans are headed off the cliff. And that is precisely where we should all hope they go.

…. now let’s look at the Florida numbers from the NBC/Marist poll. There Obama is beating both Romney and Gingrich by outside the margin of error. He leads Romney 48-41 and Gingrich 51-39.

…. if Obama holds Florida, he can afford to lose Ohio, North Carolina, Virginia, Indiana, Nevada, New Mexico, and either Michigan or Pennsylvania, and still rack up a winning 270 electoral votes. But of course, if he’s winning Florida, he’s likely not losing any of those other states, with the exception of Indiana….

Ten months and three weeks is a long, long time. But today’s poll suggests that a wipeout of such proportions is not unimaginable….

Washington Post: Against the backdrop of a tightening Republican presidential contest, much of the hierarchy of President Obama’s campaign is decamping from Chicago to Washington on Tuesday for a high-profile debriefing on the the state of the president’s reelection effort.

…. At the top of the list is an erratic Republican presidential field roiled by the ascent of Newt Gingrich, whom the Democrats view as a weak challenger to the president. They also take some credit for the Gingrich surge, because it appears to have partly been a result of a devastating video attack on Mitt Romney produced by Obama’s longtime admaker.

A speech by Obama last week in Kansas – a searing attack on GOP economic policies – was hailed by one liberal critic as the “most important economic speech of his presidency.” This week, Obama is celebrating the end of the U.S. war in Iraq, making good on one of this central campaign promises. Even the unemployment rate has dipped.

….. senior Obama advisers and supporters are cautiously pointing to signs that perhaps the president’s fortunes have turned a corner. Among their favorites: the laundry list of politically tricky statements that front-runners Romney and Gingrich have made during the Republican race….

NY Daily News: Julianne Moore didn’t bring her research on Sarah Palin home with her ….. the flame-haired actress told us she “read every single thing” she could about the Grizzly Mama and “watched every interview” in order to prepare for her role as the former Alaska governor in next spring’s HBO mini-series, “Game Change.”

But when we asked Moore if she’d developed a newfound respect for Palin after delving deeper into her life, the actress, 51, raised an eyebrow and sighed deeply. “No,” she said quietly.

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Rudy Giuliani to Piers Morgan: “My gut tells me right now as I look at it that Gingrich might actually be the stronger candidate, because I think he can make a broader connection than Mitt Romney to those Reagan Democrats…You won’t have this barrier of possible elitism that I think Obama could exploit pretty effectively.”